Every year there are about 40,0000 to 50,000 new companies incorporated in Singapore. As a result, Singapore ranks amongst the top 10 countries with the highest new business registered per capita. It is also ranked amongst the ten best countries to start a business by esteemed organizations like the World Bank and Forbes.
If you are looking to start a business, we understand that setting your base in your home country would be the easiest. If you are a Singaporean, you are on the right track, but if you are a foreigner, why do you want to restrict yourself and not take advantage of all that Singapore has to offer?
Singapore is a popular destination for investors and entrepreneurs, and there are plenty of good reasons for that. Still not convinced? Let’s look at some of the reasons that make Singapore so favorable for businesses.
Pros of setting your business in Singapore:
Singapore is quite strategically located. It is very well connected with the rest of the Asian countries and the other parts of the world. Companies looking at increasing their presence in Southeast Asia can leverage Singapore as a gateway to this side of the world. Hence, many MNCs and fast-growing start-ups set their headquarters in Singapore to stay connected with all the emerging markets around.
Every business wants to stay profitable and save on overhead costs. Singapore provides one of the most attractive tax systems in the world. It charges a 17% flat corporate tax rate on all chargeable income and allows start-ups to enjoy a tax exemption for their first three years of assessment. In addition, capital gains and dividend payout attract no taxes.
Even the personal tax rates in Singapore are low, starting from 0%, and follow a tier system with a maximum being 22% (with lots of tax deductions and tax rebates, too!). In addition, Singapore has an extensive network of tax treaties with over 85 countries and territories to eliminate double taxation. No wonder Singapore is known as a tax haven.
Singapore’s political scenario is very stable, with almost no bureaucratic influence. The government is and has always been pro-business. They promote business development and have put in place a lot of government initiatives to help companies achieve the same. Singapore has signed Free Trade Agreements (FTAs) with over 25 trading partners making it easy for companies to do business across borders and expand internationally.
The government also offers several grants from time to time to help companies reduce their costs and accelerate growth.
Singapore is known for its state-of-the-art infrastructure. Singapore has everything a business needs to flourish: a well-spread public transport system, high connectivity internet, and spacious business parks. In addition, it adorns one of the busiest airports and ports in the world.
Singapore has a flexible immigration policy, due to which it has a cosmopolitan crowd with an excellent cultural mix. The country might be small, but it still offers businesses a vast talent pool. Another advantage of Singapore is that the primary language spoken here is English which is also the business language for most MNCs.
Singapore is ranked as one of the safest countries in the world. The crime rate in Singapore is significantly low. Corruption and red-tapism are almost not prevalent. All this makes doing business simple and reduces inefficiencies. It also encourages foreigners to move to Singapore to work and make it their home.
Ease of Incorporation
In Singapore, one can start a business with a capital sum of just $1. The registration process can be mostly done online and takes just 15 mins. The process is straightforward and transparent. If all the documentation is in place, one can set up their company even without physically being present in Singapore within 1 to 2days normally. The fee for setting up is also nominal. In addition, the government also offers Incentives to new start-ups and companies to set up their HQ in Singapore.
With globalization, the world has become a small place. Don’t restrict yourself due to geographical boundaries. Take our word for it; Singapore is ‘the place’ for your business. If you would like to discuss how to go about incorporating your company, don’t hesitate to reach out to us.
Our friendly and experienced consultants would be more than happy to guide you during the process.